Welcome to inTEST Corporation’s 2020 Second Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. A replay will be available – accessible at www.intest.com. I will now turn the call over to inTEST’s Investor Relations Consultant, Laura Guerrant. Please go ahead, ma’am.

Thank you, Anna, and thank you for joining us for inTEST’s 2020 Second Quarter Financial Results Conference Call. With us today is Hugh Regan, inTEST’s Treasurer, Chief Financial Officer and interim CEO. Hugh will briefly review the changes in the company’s management and the quarter’s highlights, current business trends, inTEST’s detailed financial results for the quarter, and finally, we’ll discuss guidance for the 2020 third quarter. We’ll then have time for any questions. If you’ve not yet received a copy of today’s releases, they can be obtained on inTEST’s website, www.intest.com. In addition to our press release, we have issued supplemental information in advance of this call, which can be downloaded from our website on the Investor Relations page. The supplemental information is offered to provide shareholders and analysts with additional time and detail for analyzing our results in advance of the company’s quarterly results conference call. Before we begin the formal remarks, the company’s attorneys advised that this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not convey historical information but relate to predicted or potential future events that are based upon management’s current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In addition to the factors mentioned in our press release, such risks and uncertainties include, but are not limited to, the impact of the COVID-19 pandemic on our business, liquidity, financial condition and results of operations including as a result of evolving public health requirements in response to the pandemic such as government-mandated facility closures, availability of employees, supply chain and distribution interruptions, customers' inability or refusal to accept product deliveries and the sufficiency of our current…

Thank you, Laura. And welcome, everyone, and thank you for joining us for our second quarter 2020 financial results conference call. First of all, I hope all of you and your families are healthy and safe. Before we go into detail of our normal quarterly results review, I’d first like to provide you with a brief update on our response to COVID-19 and how we are maintaining through it. And then I want to give you some information with respect to the transition underway in our CEO office. On our Q1 results call, we laid out our three top priorities as they pertain to COVID-19 pandemic and recovery as being safety, continuing to meet our customer requirements and assuring continuity and liquidity in all of our businesses, and that has not changed. These remain the greatest areas of importance as we continue to navigate this challenging environment and provide the critical support our customers require to meet their technical road maps. Operations capabilities are largely back to normal, and our supply chain is holding up well. And while we’ve continued to make some shifts on sourcing certain items here and there, the demand for our products and the long-term drivers of our growth have not abated, and we fortunately not encountered any major disruptions. We have a strong COVID-19 safety measures in place at all of our sites worldwide and are operating with special measures in place to ensure the safety of all of our employees and to reduce the risk of operational disruption. We are taking a conservative, phased and site-specific approach to returning our team members on site, prioritizing our manufacturing workforce and engineering teams. Until this pandemic is behind us, we will be vigilant to ensure the safety of our employees while providing the best possible customer…

This is the operator; we are unable to hear you at this time. To our telephone audience, please stay online while we try to – the audio issue corrected.

Operator, can you hear me?

I can hear you now, yes.

Thank you. A good part of EMS' growth in the second quarter has been in support of power management devices for the mobile handset market and the home computing space where many people are working or studying from home during the COVID-19 pandemic. We are seeing that companies, in general, are realizing they can remain in production mode in a COVID restricted world, specifically for inTEST, our customers have a higher level of confidence than they did at the onset of the pandemic and the respective abilities to plan and execute, and therefore their need for more equipment from us as the pandemic unfolds. Q2 consolidated bookings of $13.9 million were consistent with the $13.8 million reported in the first quarter, and order flow has strengthened, especially in the analog mixed-signal production test sector, which you’ll see reflected in our guidance for the third quarter. For the second quarter, Semi bookings increased 9% sequentially to $7.3 million, while Multi Market bookings for the same period decreased 7% to $6.6 million. On a long-term basis, a diverse set of end applications is driving our business growth, confirming our Multi Market strategy. On a quarterly basis, the sequential decline in Multi Market bookings was largely due to the fact that we had a very strong orders that came in at the end of the first quarter, which makes the comparison difficult, if not less meaningful. While most of our manipulator customers have been essential and have remained open, there are a number who are not, places like fabricators, integrators, weld shops and auto manufacturers who were closed down during the quarter by mandate, and were not able to open for business or are still well below normal business levels. Q2 consolidated revenues of $13.3 million increased 18% sequentially and were 2% above…

[Operator Instructions] And our first question will come from Theodore O’Neill with Litchfield Hills Research. Theodore O’Neill: Congratulations on a great quarter. Hugh, you may have addressed this obliquely or directly in your prepared remarks, but the drop in industrial bookings quarter-to-quarter and year-over-year, could you talk about that?

Sure. Well, quarter-over-quarter, we really do think that it was a function of the first quarter timing issues as I noted during my conversation. Year-over-year, remember, as I talked about earlier, our service revenues are off because of COVID. And that is a significant – well, it’s a component of the revenues for our Thermal group, and that’s why you’re seeing that off year-over-year. Also, our flow business – what we described as our flow business, which is recurring orders of EASYHEATs are also off because customers that have purchased those are either closed or not operating at normal business levels. Theodore O’Neill: And I think at times in the past, you may have talked about 5G rollout as an opportunity for you. Is – do you have any comment in that area?

No. While Jim had talked about that in the past during the quarter, we didn’t really have any business specifically attributable to 5G.

[Operator Instructions] We’ll now take our next question from Dick Ryan with Colliers.

So, I think last quarter, you were opening up a Fremont facility with limited employees, but I’m assuming it was down the road from the EV player. And I missed what you said earlier in the conversation here about what your EV bookings were. Can you kind of give us an update on the Fremont facility, what your expectations are? And then can you clarify what you said of your EV bookings?

Sure. The Fremont facility has been reopened as we talked about. The bookings there were $873,000, while actually not in Fremont, they were booked by our Ambrell group to the EV manufacturers during the second quarter, bringing that to just over 1 million, Dick. And what was the follow-up question? I apologize, I just did not hear that.

And just – I mean, is that just to serve the EV marketplace? Or are there other verticals that that Fremont facility is going to serve?

Well, actually, the Fremont facility doesn’t serve the EV market. You may remember that, that’s Ambrell and its induction heating tools, and that’s based out of Rochester. Our Fremont facilities are just our interface facility. So that supports our semiconductor customers. So – but our induction heating group continues to do very well and has a number of customers other than EVs that it continues to support. I’m not at liberty to discuss those customer names as I mentioned during the call, but it’s a wide variety that were driving business during the quarter.

Okay. When you look at your guidance for Q3, how are you splitting that? What are your expectations for Multi Market and Semi side?

Well, with the current strength we’re seeing in Semi, my expectation would be that we would continue to see that in the third quarter based upon what we’re seeing from VLSI and other data sources that we have. Utilization rates are expected to be very strong in Q3 for our semi business. My expectation is that we’ll also see an improvement in our Multi Market business as a result of a number of opportunities that we’re currently pursuing with various customers.

Okay. And can you talk a little bit more on the CEO transition. What the Board is attempting to do? I know the release said something like unlocking the potential. What’s the Board’s view of what hasn’t happened or what they want to have happened?

Well, I think Jim has been with the company for quite some time and left us, as you know, today. I think the Board was looking for a new leader to take the company and move it forward with its long-term strategy of growing through acquisition. Nick brings a significant level of experience in that area to the company, and we’re very excited about having him join us as our new visionary and leader. So I know personally, I really look forward to working with Nick and hoping that we can grow the company further through acquisition as we’ve discussed in the past with investors.

[Operator Instructions] And it appears there are no further telephone questions. I’d like to turn the conference back over to our presenter for any additional or closing remarks.

Well, thank you for your interest in inTEST, everyone. We appreciate you listening in. If you have further questions, don’t hesitate to call Laura or me. We look forward to seeing you online at the virtual conferences Laura mentioned earlier and to updating you on our progress when we report our results for the third quarter. Everyone, stay safe and healthy, and have a good evening.